Emerging Business Models in the Pharmaceutical Industries ...

Introduction
Pharma companies are laying pre-meditated stepping
stones, with short and long term planning to overcome the
crisis in the industry brought about by increasing cost,
reduced productivity in R&D, dropping net selling prices,
problems pulling of block busters or losing exclusivity to
generic market, and drop in the pharma stock index.
Biotech drugs focus on targeted treatment solutions with
health care kiosk, integrated network approach, and the
semi block buster model contribute to the new revenue
equations that will favour the pharma industry in the
coming five years.
Health Care Kiosk
Health care kiosks owned by pharma companies on the
basis of the network model are the key future strategy of
every pharma company. The kiosk will aim at the
managed care model along with personalised drugs.
While targeted therapies for cancer, allergies and
rheumatoid arthritis are already present in the market,
they have been hyped by the stock investors. The trend is
still in the early stages.
The Big Pharmas are not completely inclined toward
targeted treatment. Once this takes place, the industry will
see a massive growth in personalised drugs around 2006.
Conclusions
Product Trends
Products are given higher priority over all approaches
towards success including choice of right partners, branding,
CRM, and pricing.
The new product lines are focused on modifying disease
based on NMEs, than geared towards symptoms. They will
target therapeutic classes such as cancer, infectious,
female/male health, cardiovascular, metabolic, inflammatory,
and lifestyle diseases. The research, development, and
commercialisation of new drugs will take place in the coming
five years.
The Integrated Network Model
The new pharma model based on the integrated network
approach will have in-licensing and out-licensing
mechanisms, and a network of research companies working
on contract basis. Pharma companies will be more like
marketers, venture capitalists, and overall integrator
companies leading a robust framework to integrate disparate
business units/companies.
This approach will lead to a focussed portfolio with higher
efficiency, reduced R&D lead time, and cost savings. The
companies will also save more money in M&A by entering
into early alliances, or following the outsourcing model.
Product life cycle management is key to reducing lead times,
mitigating risk and launching more successful products.
Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 79